LCI Industries has reported its third quarter 2018 results showing that sales grew by $49 million to $604 million, a 9 percent year-over-year increase. The supplier also announced that its board of directors has authorized the repurchase of up to $150 million worth of LCI’s common stock.
“We achieved nine percent sales growth in the third quarter, despite a 12 percent decline in RV wholesale shipments compared to the same quarter of the prior year,” said Jason Lippert, LCI’s CEO. “Our continued sales growth is reflective of our ongoing strategy to diversify our business into adjacent markets, the aftermarket segment and international sales, which now make up 34 percent of our last twelve months sales, up from 28 percent one year ago. October 2018 consolidated net sales are approximately $212 million, up one percent from October 2017, despite a slowing of RV OEM production levels as they continue to balance dealer inventory levels.”
“Our content per travel trailer and fifth-wheel increased nine percent year-over-year, and our content per motorhome increased 15 percent year-over-year, representing our fourth straight year of double-digit content growth for motorhomes,” said Scott Mereness, LCI’s president. “We continue to manage costs in today’s volatile commodity environment with cost pressures driven by tariffs and tariff speculation.”
Net income in the third quarter of 2018 was $33.8 million, compared to net income of $32.1 million in the third quarter of 2017.
The increase in year-over-year net sales reflects growth in LCI’s adjacent industries OEM, aftermarket and international markets, despite the short-term correction in RV OEM wholesale shipments as dealers normalize their inventory levels. Net sales from acquisitions completed by the company over the twelve months ended Sept. 30 contributed $56 million in the third quarter of 2018.
The company’s content per travel trailer and fifth wheel for the twelve months ended Sept. 30 increased $284 to $3,456, compared to the twelve months ended Sept. 30, 2017, of $3,172. The company’s content per motorhome for the twelve months increased $328 to $2,480, compared to the twelve months ended Sept. 30, 2017, of $2,152. The content increases are a result of organic growth, including new product introductions, as well as acquisitions.
